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Complete Solution to CA-CPT- June 2018 Paper
Section A: FUNDAMENTALS OF ACCOUNTING (60 Marks).
1. ____is an impersonal A/c
(a) Machinery A/c
(b) Prepaid Rent A/c
(c) Company A/c
(d) Government A/c
An impersonal account are those account which are not personal account, an impersonal
account includes real and nominal account. Machinery is a real account.
2. Bank Fixed Deposits A/c is ____ according to traditional approach & ___ according to accounting
equation approach.
(a) Real; Asset
(b) Asset; Real
(c) Nominal; Personal
(d) Personal; Asset
Under traditional approach debit/credit and their rules are considered that is (personal, real
and nominal account), real account relates to asset of the firm. Bank Fixed Deposit account is a
fixed asset which as per traditional approach is a real account
Under accounting equation approach relationship of assets with that of liability and capital in
the equation form is known as "Accounting Equation" which is (Capital + Liability = Assets), so
Bank Fixed Deposit account is an asset as per accounting equation approach.
The relationship of assets with that of liabilities and owners’ equity in the equation form is
known as ‘Accounting Equation’. Basic accounting equation comes into picture when sum total
of capital and liabilities equalizes assets, where assets are what the business owns and capital
and liabilities are what the business owes. Under double entry system, every business
transaction has two-fold effect on the business enterprise where each transaction affects
changes in assets, liabilities or capital in such a way that an accounting equation is completed
and equated as:
4. Proprietor brought cash into the business. The effected accounts under traditional approach
are_____
(a) Nominal, Real
(b) Real, personal
(c) Real, Nominal
(d) Personal, Real
Proprietor brings cash into the business which increases the assets of the firm as well as capital
of the proprietor. Under traditional approach increase in asset has to be debited and increase in
capital should be credited
Here first account that is effected is cash account (asset) which is real account and second
account effected is capital account (proprietor) which is personal account.
5. Purchases=₹20,000
Trade diosunt-10%
Cash discount -5%
Purchases A/c is to be debited by ₹____
(a) 20,000
(b) 18,000
(c) 17,5000
(d) 17,100
Only trade discount is deducted from gross purchases and not cash discount. Caah disount is
separately credited to Profit & Loss Account
Hence amount to be debited in Purchases A/c is (20,000) - (20,000*20/100) = 18,000/-.
Under double column cash book, along with columns for amounts to record cash receipts and
cash payments another column is added on each side to record the cash discount allowed or the
discount received.
7. Dishonour of a discounted bill, not recorded in the cashbook will be added in the B.R.S, if the
balance given is_____
(a) Unfavourable balance as per cash book
(b) Favourable balance as per passbook
(c) Both
(d) None
8. If a cheques of ₹5,000 is issued and recorded in the cash column of cash book, then
(a) Pass Book balance will be ₹5,000 more than cash book balance
(b) Pass Book balance will be ₹5,000 less than cash book balance
(c) Pass Book balance will be ₹ 10,000 less than cash book balance
(d) None of the above
Cheque issued of Rs. 5000 should have been credited to the bank column of the cash book and
this would reduce pass book by Rs. 5000 on presenting said cheque, instead cash column of the
cash book was credited inspite of bank column and pass book also might have debited on
presentment of cheque. Hence Pass book balance will be Rs. 5000 less than Cash book balance.
Provision means any amount written off or retained off by providing for depreciation, renewal
or diminution in the value of assets or retained by way of providing for any known liability of
which the amount cannot be determined with substantial accuracy.
On referring aforesaid definition of provision it is clear that provison can be for diminution of
asset or for known liability, replacement of an asset does not constitute
depreciation/diminution of asset, hence amount set aside for replacement of an asset is not
considered as a provision.
Debtors = ₹48,000
Make a provision for bad debts at 5% on debtors. The net effect in Profit & Loss A/c will be ₹____
(a) 4,200
(b) 4,800
(c) 900
(d) 5,000
Debtors balance at the end of the year Rs. 48,000, the bad debts is Rs. 2000 is already deducted
to arrive at closing debtors balance,
So provision @5% is created on closing debtors balance i.e. Rs. 48,000*5%= Rs. 2400.
The opening balance of Provision for bad debts is Rs. 3500 but provision is required for
Rs. 2400 only,
So the excess provision of Rs. 1100 is credited in P&L account and the bad debts of Rs. 2000 is
debited in P&L account,
So the net effect on P&L account will be Rs. 2000-Rs. 1100 = Rs. 900.
11. Insurance premium is paid on 1st July of every year. The premium paid on 1-7-16 was ₹1,800
and on 1-7-17 was ₹2,400. The amount to be debited to the profit & loss a/c for the year ended
31-3-18 will be ₹___
(a) 2,800
(b) 2,250
(c) 2,400
(d) 1,800
Under accrual concept, the effects of transactions and other events are recognised on
mercantile basis i.e., when they occur (and not as cash or a cash equivalent is received or paid)
and they are recorded in the accounting records and reported in the financial statements of the
periods to which they relate. Here insurance premium paid on 1.07.2016 for the year was Rs.
1,800 and insurance premium paid on 1.07.2017 for the year was Rs. 2,400.
So insurance premium expense to be shown in Profit and Loss account will be as:
For the year 2016-17, per month rent expenses will be Rs. 1,800/12 = Rs. 150 per month and
So insurance premium expense for the year ended on 31.03.18 will be Rs. 150*3 = Rs. 450
(from April to June, 2017) + Rs. 200*9 = Rs. 1800 (from July to March, 2018) = Rs. 2,250.
12. ____ signifies the meaning of investing the amount outside the company in the form of securities
(a) Capital Reserve
(b) Reserve fund
(c) General reserve
(d) Reserve capital
Reserve Fund signifies amount standing to the credit of the reserve that is invested outside the
business in securities which are readily realisable.
13. General Manger is entitled to a commission of 15% on net profit after charging his commission.
If his commission is ₹ 30,000, calculate the net profit before commission.
(a) ₹2, 00,000
(b) ₹2, 30,000
(c) ₹3, 00,000
(d) ₹4, 50,000
Commission is 15% of net profit after charging such commission which is Rs. 30,000
Here, net profit before such commission is x and commission being 15/115 of x
Commission = x*15/115
30,000 = x*15/115
15x = 30,000*115
x = 34,50,000/15
x = 2,30,000/-.
Therefore, net profit before commission is Rs. 2,30,000/-
14. Calculate the profit for the year ended 31-3-18 from the following data.
The profit/loss earned for the year ended on 31.03.2018 can be found out by preparing Balance
sheet,
Which follows accounting equations:Liabilities+Equity=Assets. on the assets side,
We have Fixed assets of Rs. 210,000+Stock Rs. 26,000+Sundry debtors Rs. 17,000+Cash & Bank
balance Rs. 18,000= Rs. 2,71,000
And on liabilities side we have Opening capital Rs. 2,50,000+Unsecured loan of
Rs. 35,000+Sundry creditors of Rs. 18,000= Rs. 3,03,000.
The differential figure is the Loss incurred during the year = Rs. 27,000 (Rs.2,71,000-
Rs. 3,03,000)
(a) ₹55,000
(b) ₹60,000
(c) ₹15,000
(d) None
16. Mr. X draws a 3 months bill for ₹ 40,000 on Mr. Y. This bill is renewed on the due date for
another period of 2 months at an interest of 12% p.a. The amount of the new bill will be ₹____
(a) 40,000
(b) 40,800
(c) 39,200
We have find the amount of renewed bill. The bill is getting renewed. Drawer will make new bill
of amount use to be paid interest on the same amount for extra time given.
Relevant data:
A promissory note is an instrument in writing, not being a bank note or currency note
containing an unconditional promise signed by the maker/buyer to pay a CERTAIN SUM OF
MONEY only to or to the order OF A CERTAIN PERSON. Further, under section 31(2), of the
RBI Act, a promissory note cannot be made payable to bearer. Based on the given definition
and characteristics of promissory note it can be very much concluded that promissory note
cannot be made payable to bearer as there has to be a certain person involved.
Relevant Data:
Relevant Calculation:
When no separate set of books are maintained, Memorandum joint venture account is prepared
to ascertain the profit or loss made by the joint venture where each co-venturer keeps record of
own transactions only
21. A bought goods of the value of ₹10,000 and consigned them to B to be sold by them on a joint
venture, profit being divided equally, A paid ₹1,00 for freight and insurance. A draws a bill on B
for ₹10,000. A got is discounted at ₹9,500. B sold the goods for ₹15,000. Commission payable to
B is ₹500. Find out the profit on venture?
(a) ₹3,000
(b) ₹3,500
(c) ₹4,000
(d) ₹3,200
Total expenses = Purchase cost of goods + freight and insurance expense + bill discounting
expense + commission paid to B.
Total expenses incurred = 10000 + 1000 + 500 + 500 = 12000.
The value of profit is evaluated as follows: Sale price - total expenses incurred.
Profit = 15000 - 12000 = 3000.
22. P & Q entered into a joint venture. P consigned goods costing ₹15, 00,000 to Q. Expense paid by
P amounted to ₹25,000. P will get a commission of 2% on purchases and Q will get a
commission of 1% on sales. Q sold 90% of the goods for ₹17, 00,000 and the remaining goods
were stolen. Calculate the profit on joint venture.
(a) ₹1,30,000
(b) ₹1,28,000
(c) ₹1,38,000
(d) ₹1,50,000
The value of profit is evaluated as follows: Sale price minus total cost.
Commission on purchases = 2% of 1500000 = 30000.
Commission on sales = 1% of 1700000= 17000.
Expenses paid by P = 25000
Profit = 1700000 - (1500000 + 30000 + 17000 + 25000) = 128000.
This is a method of depreciation which also takes into account the element of interest on capital
outlay and seeks to write off the value of asset as well as the interest lost over the life of the
asset.
24. Annual Depreciation on machinery is ₹15,000. Estimated life time is 10 years and salvage value
is ₹10,000. At the end of the 8th year, the machine was sold for ₹37,500. Then there will be ____
(a) Loss of ₹2,500
(b) Profit of ₹2,500
(c) Loss of ₹7,500
(d) Profit of ₹7,500
Relevant Data
Purchase year = 8 years ago
Life of Asset = 10 years
Salvage value = 10000
Purchase value = (x-10000)/10 = 15000
(x - 10000) = 150000
x = 150000 + 10000
= 160000
Sale date = end of 8th year
Sale value = 37500
Depreciation = 15000 pa
Relevant Calculation
Total depreciation up till sale = 15000*8 years = 120000
Book value as on the date of sale = 160000 - 120000 = 40000
Sale value = 37500
Profit / (loss) = Sale value - book value = 37500 - 40000 = -2500
Loss Rs. 2500
(a) ₹2,50,000
(b) ₹2,00,000
(c) ₹2,22,000
(d) Nil
We are required to calculate the amount of depreciation based on the units of production
method. Under this method, the number of units produced in a particular year is the key factor.
Relevant Data
Original Cost 20,00,000
Salvage value 2,00,000
Method of Calculating
Depreciation Method Units of Production Method
Year under Consideration Year 3-5
Units produced 10,000 units
Formula to be used
Relevant Calculation
Particulars Amount
26. An asset was purchased for ₹1, 60,000. It will be depreciated on straight line basis over a
period of 8 years. At the end of the 4th year the machine was undervalued by ₹20,000 and in the
next year the machine is valued at ₹65,000. Then the amount to be credited to Revaluation
Reserve will be ₹___
(a) ₹25,000
(b) ₹5,000
If there is an upward revision in the value of the asset for the first time, then the amount of
apprciation is to be credited to the Revaluation Reserve Account, since in the given case asset is
not revised upwards and hence no amount will be credited to Revaluation Reserve Account.
27. If a sales return of ₹1,500 has been wrongly posted to the credit of the purchase returns
account, but has been correctly entered in the trade receivables account, the total of the
(a) Trial Balance would show the debit side to be ₹3,000 more than the credit side
(b) Trial Balance would show the debit side to be ₹3,000 more than the debit side
(c) The debit side of the Trail balance will be ₹1,500 more than the credit side
(d) The credit side of the Trail balance will be ₹1,500 more than the debit side
And the credit side is more by Rs. 1,500, so the total credit side to be more by Rs. 3,000 (1,500 +
1,500)
28. Purchase of machinery for ₹50,000 was debited to Repairs A/c. Depreciation was provided at
10%. The rectification of this error will____
(a) Increase the profit by ₹50,000
(b) Decrease the profit by ₹50,000
(c) Increase the profit by ₹45,000
(d) Decrease the profit by ₹45,000
The inventory is valued at lower of cost or net realisable value, when goods are damaged their
net realisable value/market value decreases and hence are valued at net realisable which is less
than cost due to damage in goods.
31. The Closing inventory of a firm on 31-3-17 was ₹56,400. It includes damaged inventory
of ₹2,100. It is estimated that if an additional cost of ₹500 is made, it can be sold at ₹1,800. Find
the final value of closing inventory.
(a) ₹54,300
(b) ₹55,900
(c) ₹56,100
(d) ₹55,600
32. Computer taken by a company on hire basis for a period of 12 months is______
(a) A current asset
(b) A fixed asset
(c) An expense
(d) None of the above
33. X Ltd. renovated unused space at a cost of ₹2, 50,000. It will be ____
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred revenue expenditure
(d) None of the above
The renovation of unused space increases the working space. This has an effect of future
revenue generating capability of the business. Thus renovation expense is capital expensiture in
nature.
34. M and N are partners sharing profits & losses in the ratio of 5:2. 'L' was admitted for 2/7th
share, which he acquires from M and N in the ratio of 3:1. Calculate the new profit sharing ratio.
(a) 7:3:4
(b) 3:7:4
(c) 5:2:2
(d) 5:3:2
M : N = 5/7 : 2/7
C admit for 2/7 share and gets his share from M = 3/4 and from N = 1/4
new ratio = old ratio – sacrificing ratio
Sacrificing Ratio:
M = 2/7 * 3/4 = 6/28 = 3/14
N = 2/7 * 1/4 = 2/28 = 1/14
New Ratio:
M’s share = 5/7 – 3/14 = (10-3)/14 = 7/14
N’s share = 2/7 – 1/14 = (4-1)/14 = 3/14
L’s share = 2/7 * 2/2 = 4/14
New profit ratio of M : N : L = 7 : 3 : 4
35. On the death of a partner, his executors are paid the share of profits of the deceased partner for
the relevant period. This payment is recorded in Profit &Loss........ Account.
(a) Adjustment
(b) Appropriation
(c) Suspense
On the death of the partner his executors are paid the share of profits of the deaceased partner
for the relevant period, and the amount paid is recorded first in Profit & Loss Suspense A/c,
then this will be transferred to Profit and Loss A/c.
36. Gold, Silver and Copper share profits & Losses equally. The firm has taken separate life
insurance policies of ₹ 15,000 each on the lives of partners. Silver died and remaining partners
surrendered their policies. The surrender value is 20%. Calculate the share of Silver in the life
policies.
(a) ₹ 7,000
(b) ₹ 9,000
(c) ₹ 15,000
(d) ₹ 21,000
Relevant Data:-
1) Gold, Silver and Copper were equal partners
2) They has taken individual life policy of ₹ 15,000 for each partner
3) Silver died
4) The surrender value was ₹ 20% (i.e. ₹ 3000) for each policy on date of death of Silver.
Relevant Working:-
Since, individual policies for each parnter are taken, full amount of Silve's policy will be
received whereas policy of Gold & Copper will realise surrender value.
So, Amount received by firm on policies = ₹ 15,000 (Silver's policy) + ₹ 3000 ( Gold's policy) + ₹
3000 (Copper's Policy) = ₹ 21,000
Relevant Data:-
Relevant working:-
(a) ₹ 84,000
(b) ₹ 28,000
Relevant Data:-
1) Profit of the last four year - ₹ 24,000, ₹ 32,000, ₹ 30,000 & ₹ 36,500
2) Goodwill is to be calculated by three year purchase method
3) Non-recurring income included in above profits of last two year is ₹ 6000 & ₹ 4500
respectively
Relevant Working:-
Future Maintainable Profits:
2016-17 = ₹ 30,000 - 6,000 = ₹ 24,000
2017-18 = ₹ 36,500 - 4,500 = ₹ 32,000
Average profit = (24,000+32,000+24,000+32,000)/ 4 = ₹ 28,000
Goodwill = Average profit * 3 year profit
= ₹ 28,000 * 3
= ₹ 84,000
(a) ₹126
(b) ₹93
(c) ₹100
(d) ₹57
Relevant Information -
1) Rate of interest on drawings = 6%
2) Accounts are closed on 31st March of every year
Relevant Working –
If firm is following JLP method then JLP reserve is to be distributed among partners as per old
profit sharing ratio on retirement on partners.
According to section 464 of the Companies Act, 2013 the number of partners in any association
shall not exceed 100. However, the Rule given under the Companies (Miscellaneous) Rules,
2014 restrict the present limit to 50.
43. A, B & C are partners in a firm with capitals of ₹40,000, ₹35,000, and ₹50,000 respectively. B
retired from the firm. On that date the goodwill firm is valued at ₹48,000. General Reserve
stood at ₹18,000. The profit on revaluation was ₹6,600
If 50% of the amount due to B is paid in cash and the balance is transferred to his loan A/c,
Calculate the amount of B's loan
(a) ₹29,600
(b) ₹26,000
(c) ₹18,000
Relevant information-
Relevant Calculation-
44. In the absence of an agreement, if there is any credit balance in the capital A/c of a deceased
partner, his legal representatives are entitled to_____
(a) 6% interest in the balance
(b) Share of deceased partner in the profits earned by the firm
(c) Either a) or b)
(d) None of the above
The amount due to the deceased partner carries interest at a mutually agreed upon rate. In the
absence of agreement, representatives of the deceased partner can receive, at their option,
interest at rate of 6% pa or share of profits earned for the amount due to the deceased partner.
Goodwill is the compensation to the old partners for their sacrifice in connection with the
admission of new partner. So premium of goodwill brought by new partner is to be credited to
the capital account of the partners in their profit sacrificing ratio.
46. A company has issued 85,000 shares of ₹100 each. An amount of ₹84, 25,000 was received up to
the final call. There were no arrears till final call was made. Final call was paid on 82,500 shares.
Final call money per share will be ____
(a) ₹10
(b) ₹20
(c) ₹30
(d) ₹40
Relevant Information:
Relevant Calculation:
47. A company issued 50,000 equity shares of ₹10 each at a premium of 15% payable as ₹3 on
application, ₹6.50 on allotment (including premium) and ₹2 on call. Application were received
for 75,000 shares and pro-rata allotment was made. All the calls were made by the company
and the amount was duly received except allotment and call money from a shareholder who
applied for 1,200 shares. Calculate the calls in arrears.
(a) ₹5,600
Relevant information:
Relevant working:
48. When debentures are issued as collateral security against any loan, then the holder of such
debentures is entitled to
When debentures are issued as collateral security liability on these debentures arises on default
of Payment of loan. Therefore, interest is Payable only on amount of loan.
Only fully paid up preference shares can be redeemed. Therefore, only 15000 shares are being
redeemed in the given question.
When shares are redeemed by utilising the distributable profit, an amount equal to the face
value of the shares redeemed is transferred to the Capital Redemption Reserve Account by
debiting distributable profits.
Amount to be transferred to the Capital Redemption Reserve:
(15000 shares * ₹ 10) = ₹ 1,50,000.
50. X Ltd. Issued 10,000, 12% Debentures of 100 each at ₹94, on 1Jan, 2010. Under the terms of
issue 1/5th of the debentures are redeemed annually. First redemption on 31/12/10. Calculate
discount to be written off in 2013.
(a) ₹ 8,000
(b) ₹ 16,000
(c) ₹ 20,000
(d) ₹ 12,000
Amount of discount to be
Year End Debt outstanding Ratio of benefit derived
written off
2010 10,00,000 5 (60000*5/15) = ₹ 20,000
2011 8,00,000 4 (60000*4/15) = ₹ 16,000
2012 6,00,000 3 (60000*3/15) = ₹ 12,000
2013 4,00,000 2 (60000*2/15) = ₹ 8,000
2014 2,00,000 1 (60000*1/15) = ₹ 4,000
TOTAL 15
(a) Periodicity
(b) Consistency
(c) Materiality
(d) None
There are three fundamental accounting assumptions, namely Going Concern, Consistency and
Accrual concept. Going concern concept means that business will continue in operation for the
foreseeable future, consistency concept is for comparability of the financial statements of an
enterprise through time, usually the accounting policies are followed same from one period to
another and accrual concept signifies that the effects of transactions and other events are
recognised on mercantile basis i.e., when they occur and not as cash or a cash equivalent is
received or paid. Only if any of the fundamental accounting assumptions viz. going concern,
consistency and accrual is not followed in financial statements, the fact should be specifically
disclosed.
Therefore, out of the given option consistency is one of the fundamental accounting assumption.
52. A new asset is purchased for ₹ 2,00,000 in replacement of an old asset of ₹ 1,50,000 and ₹
50,000 is paid in cash. What is the effect of this transaction on the total assets of the firm?
(a) Total assets increased by ₹ 2,00,000
(b) Assets and liabilities increased by ₹ 2,00,000
(c) Liabilities increased by ₹ 2,00,000
(d) Both increase and decrease of assets by ₹ 2,00,000
With purchase of new asset of ₹ 2,00,000/- asset side of the balance sheet increased with the
said amount and for purchase of this new asset firm gave its old asset of value ₹ 1,50,000/-
alongwith cash of ₹ 50,000/- which reduced the asset side of balance sheet by ₹ 2,00,000/-(i.e. ₹
1,50,000 + ₹ 50,000). Hence, effect of the transaction on the total asset of the firm is increase
and decrease of asset by ₹ 2,00,000/-.
53.
54.
55.
56.
57.
58.
59.
60.
When two parties exchange identical offers in ignorance at the time of each other’s offer, the
offers are called cross offers. It is not a binding contract, as ones offer cannot be construed as
acceptance by the other.
62. The letter of offer is posted on 15-03-18. It reaches offeree on 18-03-18. When the
communication of offer is is said to be completed?
(a) 15-03-18
(b) 18-03-18
Section 4 of Indian Contracts Act 1872, the communication of an offer is complete when it
comes to the knowledge of the person to whom it is made. An offer may be communicated
either by words spoken or written or it may be inferred from the conduct of the parties. Here
letter of offer is posted on 15.03.2018 it reaches offeree on 18.03.2018, here the communication
of offer is complete on 18.03.2018, i.e., when it comes to the knowledge of offeree.
The communication of a revocation of offer is complete as against the person who makes it,
(proposer) when it is put into a course of transmission to the person to whom it is made
(proposee) so as to be out of the power of the person who makes it, and, as against the person
to whom it is made (proposee/acceptor), when it comes to his knowledge. Hence a person who
has made an offer can withdraw it before its acceptance is intimated to him.
Consideration must be offered by the promisee or the third party at the desire or request of the
promisor. An act done at the desire of a third party is not a consideration.
65. Which of the following is not an exception to the rule "Agreement without consideration is
void"?
(a) Bailment
(b) Natural love and affection
(c) Promise to pay time barred debt
(d) Compensation for past Non-voluntary service
The general rule of law is "No Consideration, No Contract" but there are a few exceptional cases
where a contract, even though without consideration is valid.
- Natural Love and Affection
- Compensation for past voluntary services
- Promise to pay time barred debt
- Agency
- Completed gift
- Bailment
- Charity
Thus, all the above exceptions are valid and this exception does not include compensation for
past non-voluntary services.
The limits to contractual freedom are set out in Section 23 of the Act. An agreement, the object
or consideration of which is unlawful is void. Consideration or object is unlawful if it is
forbidden by law; or it would; if permitted defeat the provisions of any or law or is fraudulent;
or involves injury to the person or property of another, or is immoral; or opposed to public
policy. Thus, consideration is considered unlawful in all the cases as set out in section 23.
Consensus-ad-idem implies that "two or more persons are said to have consented when they
agree upon the same thing in the same sense".
As where relation of trust and confidence exist between the parties to a contract. Such fiduciary
relation exists between doctor and patient, father and son, solicitor and client, etc. Further,
there is existence of real and apparent authority in case of doctor and patient. Thus, there is
presumption that relationship between doctor and patient comes under undue influence.
In wagering agreement there are two parties, one wins, the other loses and involves payment of
a sum of money upon the determination of an uncertain event in which neither of them has
legitimate interest. Agreements by way of wager are void. Section 31 of the Act defines
contingent contract as "a contract to do or not to do something, if some event collateral to such
contract, does or does not happen". Contracts of insurance are of this class, hence valid.
Section 72 states, 'A person to whom money has been paid, or anything delivered, by mistake or
under coercion must repay or return it. Thus, B is liable to pay the price of the goods under
section 72 of Indian Contract Act, 1872.
Literally the word "wager" means "a bet" something stated to be lost or won on the result of a
doubtful issue, therefore, wagering agreements are nothing but ordinary betting agreements.
Section 30 of the Indian Contract Act talks about wagering agreements, which reads as
"agreements by way of wager are void". A wagering contract like lottery is in nature of bets and
gambling (game of chance) is not only void but illegal. Therefore an agreement to buy a ticket of
lottery is a wagering agreement.
73. Contracts which involve the exercise of personal skill or diligence must be performed by:
(a) Promisor
(b) Legal representatives
(c) Agent
(d) Third party
Where contract which involves the exercise of personal skill or diligence, or which are founded
on personal confidence between the parties must be performed by the promisor himself.
74. If both parties have performed their obligation under the contract, it is called_____
(a) Tender of performance
(b) Attempted performance
(c) Actual performance
(d) offer to perform
Novation can take place only by mutual agreement between the parties.
A contract may be discharged either by an Act of the parties or by an operation of law in the
different base set out below:
-Discharge by actual performance
-Discharge by mutual agreement
-Discharge by impossibility of performance
-Discharge by lapse of time
-Discharge by operation of law
-Discharge by breach of contract
Therefore, all the options given in the question are basis on which contract may be discharged.
The phrase "quantum meruit" literally means "as much as is earned" or "according to the
quantity of work done".
78. Though plaintiff does not suffer any loss, still he can claim____ damages.
(a) Nominal
(b) Ordinary
Nominal damages are awarded where the plaintiff has proved that there has been a breach of
contract but he has not in fact suffered any real damage. It is awarded just to establish the right
to decree for the breach of contract. The amount may be a rupee or even 10 paise.
Section 13 (d) of Indian partnership Act, 1932 deals with interest on advances - A partner who
makes an advance to the firm in addition to the amount of capital to be contributed by him, the
partner is entitled to claim interest thereon @ 6% per annum.
According to section 464 of the Companies Act, 2013 the number of partners in any association
shall not exceed 100. However, the Rule given under the Companies (Miscellaneous) Rules,
2014 restrict the present limit to 50
81. X, Y and Z are partners in a partnership at will. X wants to retire from the firm. It can be done
by:
(a) Consent of Y and Z
(b) giving notice to Y and Z
(c) giving public notice
(d) None of the above
Section 13 of Indian Partnership Act,1932 deals with Rights of partners - No partner is entitled
to receive any remuneration in addition to his share in the profits of the firm for taking part in
the business of the firm, but can be varied by an express agreement, or by course of dealings.
83. Which of the following does not come under implied authority of a partner?
(a) Taking debts and paying debts on behalf of firm
(b) Buying and selling of goods relating to business of firm
(c) Acquiring immovable property on behalf of firm
(d) Suing and defending suits on behalf of firm
Sections 19(1) and 22 of Indian Partnership Act, 1932 deals with the implied authority of a
partner- A partner has implied authority to bind the firm by all acts done by him in all matters
connected with the partnership business and which are done in the usual way provided that the
act is done in the firm's name, or any manner expressing or implying an intention to bind the
firm and are not in their nature beyond the scope of partnership. Therefore, Acquiring an
immovable property in not a connected with partnership business and hence does not come
under implied authority.
84. If minor wants to file a suit for his share of profit, he can do it only_____
(a) Where he severes his relationship with firm
(b) Where he severes attains majority
(c) Where he severes is in the firm as beneficiary
(d) None
Minor has a right to sue the other partners for his share of property but only when severing
(cutting) his connection with the firm, and not otherwise and in such case valuation will be
made as per rules contained in section 48.
In spite of dissolution of the firm, partners continue to be liable for any act done by any of them,
which would have been an act of the firm if done before the dissolution, until public notice is
given of the dissolution. Thus, even if accounts are settled, partners dues are paid off or the
registrar strikes off the name, the partners will continue to be liable for each others' acts until a
public notice is given for dissolution.
86. Registration application of a partnership firm is posted on 22-02-18. The registrar's approval
and entry in register in register of firm took place on 28-03-18. Registration is said to be
completed on:
(a) 22-03-18
(b) 28-03-18
When the Registrar is satisfied that the provisions of Section 58 have been duly complied with,
he shall record an entry of the statement in a Register called the Register of Firms and shall file
the statement. Then he shall issue a certificate of Registration. Therefore, in the given case
registration is said to be completed on 28-03-2018 when registrar's approval and entry in
register of firm took place.
87. Which of the following is not an essential element for expulsion of a partner under section 33?
(a) Expulsion should be made on solid ground
(b) Deed should provide for expulsion
(c) Expulsion must be in good faith
(d) Expulsion should be made by majority
Section 33 suggests that a partner may not be expelled from a firm by a majority of partners
except in exercise, in good faith, of powers conferred by contract between the partners. It is,
thus, essential that:
(i) the power of expulsion must have existed in a contract between the partners;
(ii) the power has been exercised by a majority of the partners; and
(iii) it has been exercised in good faith.
If all these conditions are not present, the expulsion is not deemed to be in bona fide interest of
the business of the firm. If a partner is otherwise expelled, the expulsion is null and void. Thus,
expulsion should be made on solid ground is not an essential as per section 33 of the Act.
Section 21 states that over and above the implied authority which every partner wields subject
to the provision of Section 20, the Act further recognizes that each partner can bind the firm
by all of his acts done in an emergency, with a view to protecting the firm from any loss,
provided he has acted in the same manner as a man of ordinary prudence would have
acted in the like circumstances.
90. Which of the following is not a right of unpaid seller against goods?
(a) Right to file a suit for price
(b) Right of lien
(c) Right to stop goods in transit
(d) Right to resell
An unpaid seller has been expressly given the rights against the goods as well as the buyer
personally. The rights of an unpaid seller against the goods includes Rights of lien (Section 47 of
Sales of Goods Act, 1930), Right of stoppage in transit, Right of re-sale. Hence Right to file a suit
for price is not a right available to unpaid seller.
Under section 64 of the Sale of Goods Act, 1930 in the case of an auction the sale is complete
when the auctioneer announces its completion by the fall of hammer.
92. X sells milk containing typhoid germs. Y purchases that milk and his wife gets attacked by
typhoid and becomes no more. Which of the following conditions is breached?
(a) Condition as to wholesomeness
(b) Condition as to quality or fitness
(c) Condition as to description
(d) Condition as to title
In the case of eatables and provisions, in addition to the implied condition as to merchantability,
there is another implied condition that the goods shall be wholesome. In the given case,
Condition as to wholesomeness is breached.
Specific goods means goods identified and agreed upon at the time the contract of a sale has
been made.
The unpaid seller can exercise the right to re-sell the goods under the following condition:
Where the goods are of a perishable nature: In such a case the buyer need not be informed of
the intention of resale.
The right of stoppage in transit is exercised only when the following conditions are fulfilled:
Therefore, Right of stoppage of goods in transit can be exercised by unpaid seller when buyer is
insolvent
96. A contract of sale has got formed between X and Y with terms on 1-3-17 as per which X has to
deliver the computer on 3-3-17 and payment is to be made on 10-3-17. Here transfer of
property takes place on:
(a) 1-3-17
(b) 3-3-17
(c) 10-3-17
(d) after 1-3-17
Under sale, property in the goods is transferred to the buyer immediately at the time of
contract. Thus, transfer of property takes place on 01.03.2017.
98. Hazara purchased 10 bags of Tomatoes from Ghazara. Hazara took delivery of 3 bags. Ghazara is
unpaid seller. The goods are of perishable nature. Then:
(a) Ghazara can resell after 10 days
The unpaid seller can exercise the right to re-sell the goods under the following condition:
Where the goods are of a perishable nature: In such a case the buyer need not be informed of
the intention to resale.
As Ghazara is an unpaid seller, he can resell without giving notice.
99.
100.
1) Conspicuous goods
2) Giffen goods
3) Conspicuous necessities
4) Speculative goods
5) Future expectations about price
On perusal of aforesaid exceptions, it is clear that Normal goods are not exception to Law of
Demand.
3. When there is no change in demand due to greater change in price, Elasticity of demand is:
(a) Zero
(b) Less than 1
(c) Less than 1
(d) None
Elasticity is zero, if there is no change at all in quantity demanded due to greater change in
price i.e. when quantity demanded does not respond to a price change. The demand curve is a
vertical line parallel to the y-axis.
Goods having negative income elasticity are known as inferior goods and their demand falls as
income increases.
5. If the percentage change in quantity demanded is less than the percentage change in price it is
called:
(a) Unit it is demand
(b) Perfectly elastic demand
(c) More elastic demand
(d) Inelastic demand
When quantity demanded changes by a smaller percentage than does price, the demand for the
good is said to be inelastic and elasticity is greater than zero, but less than one.
The vertical supply curve (i.e. parallel to the y-axis) shows that irrespective of price change, the
quantity supplied remains unchanged.
At the tangency point, the slopes of the price line and the indifference curve are equal. The slope
of the indifference curve shows the marginal rate of substitution of X for Y. MRSxy=MUx/MUy
The three important relationships between total utility and marginal utility are:
1. When total utility rises, the marginal utility diminishes.
2. When total utility is maximum, the marginal utility is zero.
3. When total utility is diminishing, the marginal utility is negative.
For eg: As a person consumes more and more units of a commodity, the marginal utility of the
additional units begins to diminish but the total utility goes on increasing at a diminishing rate.
Therefore, when MU is diminishing, then TU is increasing.
9. If MRS is ____ when its moves from left to right on indifference curve.
(a) Decreasing
(b) Increasing
(c) Constant
(d) None
More and more of one commodity (X) is substituted for another (Y), the consumer is willing to
part with less and less of the commodity being substituted (i.e. Y). This is called diminishing
(decreasing) marginal rate of substitution. Let us take example of food and clothing, as a
consumer has more and more units of food, he is prepared to forego less and less units of
clothing. This happens mainly because the want for a particular good is satiable and as a person
has more and more of a good, his intensity of want for that good goes on diminishing. This
diminishing marginal rate of substitution gives convex shape to the indifference curves.
1. Want is unlimited.
2. Every want is satiable.
3. Wants are competetive
4. Wants are complementary
5. Wants are alternative.
6. Wants vary with time, place and person
7. Some wants recur again
8. Wants are influenced by advertisements
9. Wants become habit and customs.
The main characteristics or properties of indifference curves are: Indifference curves slope
downward to the right, Indifference curves are always convex to the origin, Indifference curves
can never intersect each other, A higher indifference curve represents a higher level of
satisfaction than the lower indifference curve, Indifference curve will not touch either axes.
Thus, the statement that Higher indifference curve doesnot shows higher level of satisfaction is
not true.
12. Cobb- Douglas Production Function, Q=KaLa represents constant returns to scale, if:
(a) a+b=1
(b) a+b>1
(c) a+b<1
(d) a+b=0
13. The law of variable proportion operates if _____ does not change.
(a) cost
(b) Production
The Law of variable proportions operates under certain assumptions, one of which is: The state
of technology is assumed to be given and unchanged.
14. An isoquant curve is a combination of ____ which results in equal level of output:
(a) Factors
(b) Goods
(c) Services
(d) Both Goods and Services
An isoquant represents all those combinations of inputs which are capable of producing the
same level of output. Also the tangency point of the given isoquant with an iso-cost line
represents the least cost combination of factors for producing a given output.
1. Human effort
2. Labour is perishable
3. Labour is inseparable from the labourer
4. Labour power differs from labourer to labourer
5. Labour has poor bargaining power
6. All labour are not productive
7. Choice between hours of labour and hours of leisure
8. Labour is mobile.
The total fixed cost curve (TFC) is parallel to X-axis. This curve starts from a point on the Y-axis
meaning thereby that fixed cost will be incurred even if the output is zero and will be parellel to
X-axis which shows that fixed cost remains constant with change in output.
Long run average cost curve is often called a planning curve because a firm plans to produce
any output in the long run by choosing a plant on the long run average cost curve
corresponding to the given output. The long run average cost curve helps the firm in the choice
of the size of the plant for producing a specific output at the least possible cost.
Opportunity cost is concerned with the cost of foregone opportunity. It involves a comparison
between the policy that was choosen and the policy that was rejected. e.g. the opportunity cost
of using capital is the interest that it can earn in the next best use with equal risk.
19. Demand remains constant and supply increase then equilibrium price:
(a) Decreases
(b) Increases
(c) Remains constant
(d) None
Result of increase in supply with demand remaining same, the equilibrium price will go down
and the quantity demanded will go up.
Thus, Oligopoly market have few (2 to 10) sellers in the market selling homogeneous or
differentiated products.
It has been observed that in many oligopolistic industries prices remain sticky or inflexible for a
long time. They tend to change infrequently, even in the face of declining costs. Many
explanations have been given for this price rigidity under oligopoly and the most popular
explanation is the kinked demand curve hypothesis given by an American economist Paul A.
Sweezy. Hence this is called Sweezys Model.
22. All of the following are characteristics of a perfectly competitive market, except?
(a) Large number of firms
(b) Homogeneous goods
(c) Price discrimination
(d) Free entry and exit
In inductive method conclusions are drawn on the basis of collection and analysis of facts
relevant to the inquiry. The logic in this case proceeds from particular to general.
Price theory which is also known as Micro economics includes fixing the prices of the product
i.e. Product Pricing.
Indian railways cover more than 65,000 kilometers. Indian railways is world's fourth largest
rail network.
The SGSY was restructured as the National Rural Livelihoods Mission (NRLM) and now has
been renamed as AAJEEVIKA.
30. The National Rural Health Mission was started in the year:
(a) 2004
(b) 2005
(c) 2006
(d) 2007
31. Which sector of the Indian economy contributes maximum to the GDP?
(a) Primary Sector
(b) Manufacturing Sector
(c) Secondary Sector
(d) Tertiary Sector
The tertiary sector in India is its largest sector and accounts for increasingly significant share of
GDP.
Open market operations is a quantitative measure of credit control which implies deliberate
direct sales and purchase of securities and bills in the market by central bank on its own
initiative to control overall volume of credit in the economy.
33. ____ refers to that portion of total deposits which a commercial bank has to keep with itself in
the forms of liquid assets is known as:
(a) CRR
(b) SLR
(c) Bank Rate
(d) Repo Rate
Statutory liquidity ratio (SLR) is a quantitative measure which controls the overall credit in the
economy, refers to that portion of total deposits which a commercial bank has to keep with
itself in form of liquid assets - cash, gold or approved govt securities.
34. Central Bank is not concerned directly deal with which of the following?
(a) Government of India
(b) Provincial Government
(c) Commercial Banks
(d) General public
Central bank never deals with the general public but it gives directions and guidelines to
commercial banks, who is responsible for promoting banking habits among people and
mobilising savings in the economy.
Inflation refers to a persistent upward movement in the general price level. It results in a
decline of the purchasing power. Hence both the points are correct.
the difference between total expenditure and total revenue receipts and capital receipts but
excluding borrowings and other liabilities. or
its is the sum of budget deficit plus borrowings and other liabilities.
To restore fiscal discipline, the Fiscal Responsibility and Budget Management (FRBM) Bill was
introduced in 2000 and passed in 2003.
Balance of Trade may be defined as the difference between the value of goods sold to foreigners
by the residents and firms of the home country and the value of goods purchased by them from
foreigners.
India's foreign exchange reserve comprises foreign exchange assets, gold, special drawing
rights and reserve tranche positions in the IMF. Hence all of the given options are included in
foreign exchange reserves.
Privatisation helps in making public sector units more competitive and privatisation will
encourage growth of monopoly power in the hands of big business houses. It will result in
greater disparities in income and wealth. Hence both are correct.
43. Over the years India ____ in reaching the targets of disinvestments:
(a) Succeeded
(b) Failed
(c) Not changed
(d) Abandoned
The disinvestment programme carried out has not been very encouraging (not successful).By
end of 2016-17, govt could auction off a very small amount only (Rs.2.2 Lakh crores) and been
too insignificant to improve the managerial control.
The function of the IMF is as a short-term credit institution and not as a long-term credit
institution.
45. ____ refers to the relaxation of certain restrictions in the areas of socio & economic policies:
(a) Globalization
(b) Liberalization
(c) Privatization
(d) Disinvestments
FDI is prohibited in Activities/sectors that are not open to private sector investment (e.g.
Atomic energy and Railway Transport).
47. In Present scenario, the dominance of large scale businesses in India has____
(a) Increased
(b) declined
(c) Remain constant
(d) Negligible
In present scenario, the dominance of large scale business in India has increased.
48. Value added method of calculating national income is also known as:
(a) Income method
(b) Product method
(c) Expenditure method
(d) Distribution method
50.
1
51. If logx (∛2)=15 then x=
(a) 2
(b) 8
(c) 16
(d) 32
Hence,
Now look at the options, all options 2, 8, 16, 32 can be easily rewritten as .
=D
= 25*1/3*1/5 =
Power set means all possible combinations of subset including null set.
Hence B is the correct answer.
B={x/x=4(n-1), where n 𝜖 𝑁 }
(a) A∁ B
(b) B∁ A
(c) A=B
(d) None
A = 3n - 2n-1
B = 4(n-1)
So lets build set A and set B with different possible outcomes assuming n = 1,2,3,4....
n=1 A 3-2-1 = 0
B 4(1-1) = 0
n=2 A 9-4-1 = 4
B 4(2-1) = 4
n=3 A 27-6-1 = 20
B 4(3-1) = 8
n=4 A 81-8-1 = 72
B 4(4-1) = 16
Hence, A = (0,4,20,72)
B = (0, 4, 8, 16)
We can see that every outcome of A is a multiple of 4 on the other hand B is also set of all
multiple of 4 hence
𝑋6
55. The range of the function 12 is
𝑋 +1
(a) [0.∞]
1
(b) [0,2]
(c) (-∞, ] ∪[2,∞)
1
(d) [0,2]
𝑥6
y =𝑥 12 +1
both powers
y is positive
for x=0, =>y=0
∴ Min. value of y=0
1
Also for x=1, y=2
1
and for any other value of y<2
1
∴ Max. Value of y=2
1
∴Range= [0, 2]
at first term=q
Common ratio=R
=log [qq-r+r-p+p-q.R(R-1)(q-r)+(q-1)(r-p)+(r-p)(p-q)]
=log[q0 R0]
=log 1
=0
=a2[(r-r2)|+(r2-1)2+(r3-r)2]
=a2[r2+r4-2r3+r4+1-2r2+r6-2r4+r2]
=a2[1-r3]2
= (a-ar3)2
= (a-d)2
an =3n-2n
Sn=∑an
=∑ (3n-2n)
=∑3n-2∑n
3
= (3n-1)-n (n+1)
2
59. Find the equation of the line parallel to the line joining (5,3) (4,7) and passing through the point
(2,-5)
(a) X+y-3=0
(b) X+4y-3=0
(c) 4x+4y-3=0
(d) 4x+y-3=0
A=(5,3),
B=(4,7)
Slope of AB=(y_2-y_1)/(x_2-x_1 )
=(7-3)/(4-5)
=-4
61. If the Roots of the equation x3-15x2-kx-45=0 are in A.P then roots are=
(a) 2,5,9
(b) 1,5,9
(c) 3,6,9
(d) 5,10,15
X3-15x2+kn-45=0
At roots 𝛼, 𝛽, 𝛾
−𝑏
𝛼+𝛽+𝛾 =
𝑎
𝛼 + 𝛽 + 𝛾 =15
(a-d)+a+(a+d)=15
3a=15
a=3
−𝑑
Also, 𝛼𝛽𝛾 = 𝑎
(5-d)(5)(5+d)=45
25-d2=9
d2=16
d=±4
∴Roots are 1,5,9
62. If the Roots of the equation kx2-3x-1=0 are the Reciprocals of the roots of the equation x2-3x-
4=0 then k=
(a) 4
(b) -4
(c) 3
(d) -3
Kx2-3x-1=0
X2+3x-4=0
(x+4)(x-1)=0
X=-4, 1
(a) 55
(b) 45
(c) 35
(d) 25
𝑥 + 𝑥 2 + 𝑥 3 ± − − − + 𝑥 10 − 10
= lim
𝑥→1 𝑥−1
(𝑥 − 1) + (𝑥 2 − 1) + (𝑥 3 − 1) + − − − − +(𝑥 10 − 1)
= lim
𝑥→1 𝑥−1
=1+2+3+------+10
10×11
= 2
= 55
𝑒 𝑢𝑥 −𝑒 𝑣𝑥
64. If F(x)= 𝑋
then
(a) 0
(b) u-v
(c) v-u
(d) ∞
𝑒 𝑥𝑢 − 𝑒 𝑥𝑣
lim
𝑋→0 𝑥
𝑒 𝑥𝑢 − 1 + 1 − 𝑒 𝑥𝑣
lim
𝑋→0 𝑥
𝑒 𝑥𝑢 −1 𝑒 𝑥𝑣 −1
lim − lim
𝑋→0 𝑥 𝑋→0 𝑥
𝑒 𝑥𝑢 −1 𝑒 𝑥𝑣 −1
u lim 𝑥𝑢
− 𝑣lim
𝑋→0 𝑋→0 𝑥𝑣
u-v
log(3+𝑥)−log(3−𝑥)
65. lim =
𝑥→0 𝑥
(a) 0
(b) 1
2
(c)
3
3
(d) 2
1 1
66. ∫0 log(𝑥 − 1) 𝑑𝑥 is equal to_____
(a) 1
(b) 0
(c) 2
(d) -1
1 1−𝑥
I=∫0 log( 𝑥
) 𝑑𝑥
1 1
I=∫0 log(1−𝑥 − 1) 𝑑𝑥
1 𝑥
I=∫0 log(1−𝑥) 𝑑𝑥
1 1−𝑥 𝑥
2I= ∫0 [log ( 𝑥
)+ log(1−𝑥)] 𝑑𝑥
1
=∫0 log 1 𝑑𝑥
=0
x 1
67. If F(x)=x+ then ∫0 f(x)dx=
√1+x2
2
(a) 3 (√2 − 1)
5 x2
68. ∫0 x2 +(5−x)2
dx is equal to
(a) 0
(b) 5/2
(c) 1
(d) -1
5 𝑥2
I=∫0 𝑑𝑥-------- (1)
𝑥 2 +(5−𝑥)2
5 (5−𝑥)2
I=∫0 (5−𝑥)2 +(5−(5−𝑥))2
𝑑𝑥
5 (5−𝑥)2
=∫0 (5−𝑥)2 +(𝑥)2
𝑑𝑥-------- (2)
5 𝑥 2 +(5−𝑥)2
2I=∫0 𝑑𝑥
𝑥 2 +(5−𝑥)2
5
2I=∫0 1 𝑑𝑥
2I=5
I=5⁄2
12C5= 792
2*12C4 = 2(495)
70. The number of ways in which a man can invite one or more of his 7 friends to dinner is
(a) 64
(b) 128
(c) 127
(d) 63
72. If the difference between C.I and S.I on a sum in 3 years @ 4% p.a. is ₹912 then the sum is.
(a) ₹1,87,500
(b) ₹1,87,000
(c) ₹1,87,500
(d) ₹1,87,700
73. In C.I, if the amount is 9 times to its principle in two years then the rate of interest is
(a) 300%
(b) 200%
(c) 150%
(d) 100%
P after 2 years = 9P
Hence if 100 is original P then final P would be 900
Now by trial 100 + 300% + 300% = 1600
100 + 200% + 200% = 900
74. In S.I a certain sum becomes ₹97,920 in 3 years, and ₹1,15,200 in 5 years, then the rate of
interest is
(a) 10%
(b) 11.2%
(c) 12%
(d) 13.6%
75. A person invests ₹2000 at the end of each month @ of interest 6% compounding monthly , find
the amount of annuity after the 10th payment is
(a) ₹20,456
Here A = ₹ 2000
n = 10
i = 6% pa; 6/12% per month = 0.005
A(n,i) =
A(10, 0.005) =
= 200*10.22
= ₹ 20,456
76. Which of the following results hold for a set of distinct positive observation?
(a) AM ≥ GM ≥ HM
(b) HM ≥ GM ≥ AM
(c) AM>GM>HM
(d) GM>AM>HM
Here observations are distinct, positive, hence AM, GM & HM can't be equal & only AM > GM >
HM is true.
= 16
78. Mean of n observations is x̅, if first observation is increased by 1, 2nd observation is by 2 and so
on then new mean is ____
(a) x̅ + n. n
n+1
(b) x̅ + 2
n
(c) x̅ +
2
(d) x̅ + n
Hence,
79. For a moderately skewed distribution, which of the following relationship holds?
(a) Mean-Mode=3(Mean-Median)
(b) Median -Mode=3(Mean-Median)
(c) Mean- Median =3(Mean-Mode)
(d) Mean- Median =3(Median -Median)
This is the correct relationship between mean, median & Mode, hence it is true.
80. Mean of a service is equal to 100, coefficient of variation is 45% then the S.D is____
(a) 45
(b) 0.45
(c) 4.5
(d) 40.5
Coefficient of variation =
Hence sd = 45
The coefficient of variation (CV), also known as relative standard deviation. Standard deviation
measures dispersion. Hence coefficient of variation is a relative measure of dispersion.
82. If the sum of squares of deviations of ranks of 8 students is 50 then the rank correlation
coefficient is____
(a) 0.40
(b) 0.45
(c) 0.5
(d) 0.8
Correlation =
86. GM of Laspeyre's and Paasche's price index number is ____ price index number
(a) Kelly's
(b) Fisher's
(c) Bowley’s
(d) none of the above
Fisher’s index number is based on geometric mean of Laspeyre’s and Paasche’s index numbers.
Fisher's Index = (∑PnQo ×∑PnQn /∑PoQo ×∑PoQn)1/2 * 100.
To overcome the disadvantage of a simple average of relative method, we can use weighted
average of relative method. Generally weighted arithmetic mean is used although the weighted
geometric mean can also be used.
Pie-diagram is used for comparing different components and their relation to the total.
Ogives may be considered for obtaining quartiles graphically. If a perpendicular is drawn from
the point of intersection of the two ogives on the horizontal axis, then x-value of this point gives
us the value of median, the second or middle quartile.
90. What is the probability of having at least one 'six' from 3 throws of a perfect die?
5
(a)
6
5 3
(b) (6)
1 3
(c) 1 − ( )
6
5 3
(d) 1 − (6)
91. If 4 letters are put randomly among the 4 envelopes then the probability that all are not put in
correct envelopes?
1
(a) 24
(b) 1
23
(c) 24
9
(d)
24
Such questions look tricky and hard and most of students feel they need to do long calculation
to find the answer. Yash Sir has a very common trick for this which will make you solve such
question orally !!
Think how many ways can you put all the 4 letter is 4 envelops correctly?
Just 1 way correct and how many total outcomes can be there 4! Which is 24 ..
So you only have 1 in 24 ways to do this correctly and hence 23/24 ways to do it incorrectly !!
92. The probability of winning the game of a team is 2/3 in four games then what is the probability
of winning more than half of games is___.
16
(a)
27
27
(b) 64
19
(c)
81
8
(d) 64
𝑥−𝑚
94. If x is poison variant with mean m = 0, then z= follows _______ Distribution
√𝑚
(a) Normal
In probabilistic sampling, there is always a fixed, pre assigned probability for each member of
the population to be a part of the sample taken from that population. When each member of the
population has an equal chance to belong to the sample, the sampling scheme is known as
Simple Random Sampling. Thus, simple random sampling is probabilistic sampling.
In case of hypothesis test, when the null hypothesis is true and you reject it and accept
alternative hypothesis, you make a type I error. Therefore, (rejection of H0 when H0 is true) =
(type I error). Here, H0 = null hypothesis.
98. If SD=20 and sample size is 100, then standard error of mean is
(a) 2
(b) 5
𝑆𝐷
Standard error of mean=
√𝑠𝑎𝑚𝑝𝑙𝑒𝑠𝑖𝑧𝑒
20 20
Hence= = 10 = 2
√100